The proposed road would serve as central spine for Ahmedabad-Dholera SIR. It is decided that initially the road will be four lane with six lane structure. It could be access controlled.

The road is supposed to connect the Ahmedabad city on one hand and Dholera and Bhavnagar ports on the other side. It is envisaged that the new industry cluster to be developed along the spine would considerably benefit with central linkage. It will also act as catalyst to other developments in the region in general and that of SIR in particular. This is also a part of master plan submitted to central govt. for DMIC road connectivity. This is approved by the central govt.

The brief details are as under:

Project

Construction of Sarkhej-Vataman–Pipli-Bhavnagar Road for 153 kms.

Type

BOT

Location

Gujarat State : in Ahmedabad and Bhavnagar Districts

Ministry

Roads & Building Dept. Govt. of Gujarat

Nodal Agency

GIDB

Executing Agency

GSRDC

Concession Period

30 years

Estimated Cost

Rs. 900.39 crores

Economic IRR

31.60%

Project IRR

12.00%

Equity IRR

12.32%

VGF eligibility

20% GOI and 20% GOG,

Application lodged with GoI on 30/08/2008 for VGF ,

In principle approval for VGF received on 18.02.2009.

RFQ has been floated on 09/03/2009. Acquisition of RoW of 150 meters in progress.

2. International Air port to serve Ahmedabad-Dholera SIR

The existing airport of Ahmedabad has emerged as one with highest annual growth in traffic and will get saturated much before the year 2020. The expansion of Ahmedabad airport is difficult due to various reasons. Under the circumstances, a new international airport is required to cater the future traffic.

While assessing the potential and requirements of the Dholera SIR, Government envisaged a tremendous need for a Greenfield International Airport in its vicinity. The level of economic activities in the SIR backed by enormous domestic and foreign investment shall need a world class modern International Airport in this region. Therefore state has included the development of an International Airport in the list of “Early Bird Projects” in consultation with Department of Industrial Promotion and Policy. GoG has also signed an MoU with the Delhi Metro Industrial Corridor Development Company in this regard.

The state Government identified the location for the proposed Airport and has earmarked the land. A parcel of Government land admeasuring approximately 1700 hectors has been reserved in the triangle of village Pachham-Valinda-Pipli of Taluka Dhandhuka Dist Ahmedabad in the name of Gujarat Industrial Corridor Company Ltd (GICC), which would work as a project development agency for DMIC. The site is about 80 kms from Ahmedabad and around 20 kms from Dholera SIR. In addition to the SIR and Ahmedabad city, this location is also ideally placed vis-à-vis the cities like Nadiyad, Bhavnagar, Vadodara and Rajkot. The details of land made available for the said Air Port is shown in the table below:

Govt. waste land at Valinda-Paccham-Pipli of Dhandhuka taluka in Ahmedabad district:

Sr. No.

Village Name

Taluka Name

Survey Number

Govt.land In Hactars

Distance in km from Ahmedabad

1

PIPLI

Dhandhuka

22

793.62

85

2

PACCHAM

Dhandhuka

21

629.84

90

3

VALINDA

Dhandhuka

03

266.76

87

Total

1690.22

Since Airport is a central subject, state has follow up with the Government of India for obtaSince Airport is a central subject, state has follow up with the Government of India for obtaining necessary approvals. Hon Chief Minister vide his letter dated September 9, 2008 forwarded a proposal to Hon Minister of Civil Aviation, Government of India for setting up of proposed International Airport. Hon Minister of Civil Aviation, Government of India vide his letter dated 23rd September 2008 acknowledged the receipt of the letter.

GIDB has initiated the process for obtaining approvals from Government of India according to procedure laid down in latest Greenfield Airport Policy. They include: Clearance.

GIDB vide its letter dated 14/11/2008 to Ministry of Civil Aviation filed a Memorandum for Steering Committee for grant of site clearance.

2. Techno-Economic Feasibility Report.

GIDB vide its proposal dated 14/11/2008 requested Airport Authority of India to undertake Techno-Economic Feasibility Study. Subsequently, Airport Authority of India vide its letter dated 19/1/2009 informed GIDB that a team of AAI officers will visit the site shortly for the feasibility study. AAI requested GIDB to make payment of Rs, 3,42,151/- towards consultancy fee for carrying out the study.

3. GIDB has paid the consultancy fees to AAI and will fulfill other requirements of the AAI necessary for the feasibility study.

4. GIDB is actively providing the field data to AAI. AAI has planned the visit of proposed airport site as part of Techno-Economic Feasibility Study.

Dholera SIR : Enjoying full support of the State & Union Government...

In Metro rail the distance between Gandhinagar-Ahmedabad-Dholera is to be covered in two trenches from Gandhinagar to Ahmedabad and from Ahmedabad to Dholera. It is about 100 kms and is proposed as elevated metro. This will provide faster movement and even otherwise important for new international air port. The project is having a longer gestation period and requires to be taken up quickly. The metro is also approved under DMIC master plan by the central govt.

In one of the meetings with secretary DIPP, during his visit to Gandhinagar it was thought of high speed rail corridor on this route. It is related to pre- feasibility study being carried out by the ministry of railways for Pune-Mumbai-Ahmedbad high speed rail corridor. The govt. of Gujarat has requested the MoR to check up the possibility to extend it upto Dholera via GIFT near Gandhinagar.

In the meantime the study work has been assigned to IL&FS by GIDB for Metro rail. In fact on 29th August 2008, GIDB has re-appointed IL&FS Infrastructure development Corporation for undertaking project advisory services for the Ahmedabad Metro project with the scope of services leading to selection of concessionaire. Again, on 1st September 2008, GIDB also appointed Delhi Metro Rail Corporation for consultancy services for preparing the Detailed Project Report for the Ahmedabad Metro Extension from Gandhinagar to GIFT city.

The Government of Gujarat is also keen on considering the high speed rail feasibility study with central government (MoR) and other state provided the same could encompass the Dholera SIR and GIFT region.

A Steering Committee was formed with the approval of honorable Minister of State dated 5th September, 2008 under the chairmanship of Principal Secretary, Urban Development Department to review and monitor the progress of the studies to be carried out for Ahmedabad Metro Rail Project.

In a special meeting held under the chairmanship of PS, UDD, to review the progress of Ahmedabad Metro Rail Project on 15th December, 2008, it was decided to form immediately an SPV under 100% GoG owned Company with initial objectives of land acquisition of the metro corridor, stations and depots, shifting of utilities and interacting with both state as well as central government for finalising funding pattern. A meeting was called under the chairmanship of Principal Secretary (Expenditure), Finance Department to review the structure of SPV. A presentation was done by CEO- GIDB and it was decided to go ahead with the formation of SPV with an initial paid up capital of Rupees 10 Crores and authorised capital of Rupees 200 Crores.

The phase I corridor would include the following routes of 61.55 kms as an elevated metro rail system:

4. Mega Industrial Park / SEZ at Dholera SIR

This would be developed as initial infrastructure at Dholera SIR. This is supposed to attract the anchor industries. It is proposed to develop infrastructure of all types within the park with highest standards.

The ILFS – PMC for DMICDC have assigned the work to M/s. Halcrow, UK to carry out the feasibility study for preparation of development plan for Dholera Special Investment Region in Gujarat Sub Region of DMIC. As a part of this study, considering the Mega Industrial Park / SEZ as an early bird project, M/s Halcrow UK have initiated the planning work and identifying suitable locations for such park within the SIR area.

The DMICDC has also floated RFP for early bird projects for the first phase work which will mainly support the perspective planning of the entire Dholera SIR. The GIDB has already signed an MoU with DMICDC on 25th July 2008 in this regard.

Industrial Mega parks in DSIR

The Industrial Mega Parks are the central feature of the Dholera Special Investment Region (DSIR), a major new economic hub located 100 km south of Ahmadabad, Gujarat. The total industrial area within the DSIR is split into a number of Mega Industrial Park / SEZ which cover a gross land area of 10,000 ha. Industrial Mega Park 1 (the Phase 1 of the overall Industrial Mega Parks) covers an area of about 3,000ha gross land area. The market assessment forecast a total demand for over 9,500 ha (net) of industrial land in the DSIR over the 30 year plan period, which equates to a gross land area, including roads and infrastructure and other support facilities, of about 10,500ha to be allocated for industrial and logistics use. Employment in the industrial sectors will lay the economic foundations of the DSIR and generate about 313,000 “base” jobs, which will then generate further jobs in the service sector. Overall employment in the DSIR is expected to reach over 800,000 jobs in the plan period. Reserve areas are earmarked in the Concept Plan should additional industrial land be required.

The Spatial Strategy for the Industrial Parks

The spatial strategy proposed for the Industrial Parks of the DSIR is based upon seven planning principles as follows:

Location of the main industrial lands either side of the expressway in order to facilitate speedy access to and from the DSIR to the DMIC and key ports;

The early development phase is sited largely on Government owned land in order to speed up the release of land to the fi rst industrial anchor tenants;

Grade separated junctions on the expressway giving direct access from the highway to the main industrial areas, allowing goods vehicles to avoid entering into the residential or commercial areas of the city;

A “box” grid of arterial and collector roads linking the industrial areas together. This box is also the main loop for public transports ensuring the industrial workforce have adequate access to their place of employment via rapid transit routes;

Extending the railway line through the industrial lands in order to maximize the potential for rail based freight, with direct rail access available for a number of major development sites;

Allocation of a logistics zone and inland container port in the centre of the industrial areas with both road and rail access;

Easy access to major commercial nodes. The huge demand for industrial land in the DSIR means that it is necessary to divide the industrial land provision into a series of separate “mega” industrial zones. This division will ensure that each industrial area does not become too large and will remain easily accessible to residential areas and commercial facilities. It also makes it easier to provide infrastructure in an incremental and phased manner and provides a degree of flexibility in land use provision, as well as ensuring that the industrial land can be managed under a variety of industrial estate property models.

The development of industrial land has been phased over a 30 year period in accordance with the overall phasing strategy for the DSIR

Phasing

Phase 1

This area is developed to the east of the expressway and is intended to be the first of the mega parks to be developed. It covers the highest concentration of Government owned land in the DSIR. The strategy provides land for each of the 8 industrial sectors targeted for the DSIR and is designed to be large enough to accommodate land required by the DSIR for the fi rst 10 years of growth. This mega park will also have a close relationship with the Phase 1 township area which will also be developed during this stage.

Phase 2

This phase will witness the most significant growth of the industrial zones and will expand naturally out from the Phase1 development area. Industrial uses will expand east of the expressway and further to the south and centre of the DSIR. As with Phase 1, this phase will encompass land to accommodate all of the targeted industrial sectors.

Phase 3

Phase 3 developments will be located in the south western quadrant of the city, furthest from the centre. The area is nevertheless still well connected to the expressway and the rest of the city, including the housing areas also schedule for development in this phase.

Logistics play a citadel role in the modern intelligent supply chain management. It is defined as the broad range of activities concerned with effective and efficient movement of semi-finished or finished product from one business to another or from manufacturer/distributor/retailer to the end consumer. It relates to freight transportation, warehousing material handling, protective packaging inventory control, order processing, and marketing, forecasting and other value added services.

With a view to provide efficient logistics services, Indian Railways has embarked into a massive investment to create dedicated freight corridor between Delhi and Mumbai (called Western DFC) and Ludhiana and Howrah (called Eastern DFC), which could provide high speed, heavy pay load only for freight traffic. Western DFC passes through most high density transport arteries of the country i.e. Maharashtra, Gujarat, Rajasthan, Haryana, Delhi, Uttar pradesh with a route length of 1483km.

Gujarat shares 38% of the route covering Valsad, Surat, Vadodara, Anand, Ahmedabad, Mehsana, Palanpur. This corridor is expected to carry predominantly, container traffic, bulk and break-bulk cargo. To support this infrastructure, DMIC Delhi-Mumbai Industrial Corridor, Special Economic Zones, MMLPs Investment Regions, Industrial Area are likely to be set up contiguous to Western DFC in the coming years.

MMLP is the refined form of Logistics Park where various value added services are rendered in addition to rail/road based transportation. It is now-a-days a globally identified supply management and known by different names in different countries.

As the economic barriers among European Union were dislodged, it was essential to rationalize the transport and logistics structure by revitalizing the railways, promoting maritime and rationally integrating all modes of transport. In China, the shifting of closed economy to globalised economy enhances the need to develop a sound logistics industry.

Cushman and Wakefield have published a report “Logistics Industry- Real Estates’ New Power House” which avers that Indian logistics industry is expected to grow annually @ 15 to 25%. Major cities like Kolkata Mumbai, Chennai-Hyderabad, have identified locations for Logistics Park.

These are the different kind of logistics services:

i] 3 PL services- mainly provide outsourced or third party logistics services to the companies by transportation and warehousing.

ii] 4 PL Services- offering client specific solution to supply chain needs and they execute the solutions by facilitating the necessary tie up between different agencies and modes of transport.

Merits of MMLP

i] Excellent transport links of rail and road
ii] Custom clearance facilities
iii] Round the clock services
iv] One window services
v] Enhanced security systems
vi] Availability of more options to the users
vii] Value added services
viii] Indian Railways intend to develop MMLPs through PPP along with proposed DFC and at strategic locations for containerized as well as bulk and break-bulk cargo in order to enhance rail –co-efficient with resultant increase in the modal share of railways.

7. Gujarat, being strategically situated on the west coast of the country, has emerged as one of the fastest growing industrial states with 26 districts in the land area of 1.96 lakh sq. km. It has the longest costal line of 1600 km hosting 1 major port and 40 non-major ports – Kandla, Mumbai, Pipavav, Navlakhi, Magdallah ports are worth to mention. Endowed with only 6% of the geographical area and 5% of india’s population, Gujarat’s share at current prices accounts for nearby 6.7% of the national GDP. It accounts for 20% of the country’s total industrial production and contributes nearly 7% to the national GDP. The prominent cities of the state are Ahmedabad, Surat, Vadodara, Jamnagar, Rajkot and Jamnagar.

Several land marks achievements in respect of industries agriculture, commodities and infrastructure can be credited to Gujarat.

8. Special Economic Zones

SEZ is considered Growth Engine which can boost manufacturing, augment exports and generate employment.

9. Gujarat Infrastructure Development Board (GIDB)

GIDB is continuously striving to harness the potential of public-private investment in infrastructure sector by identifying and creating specific opportunities. GIDB itself does not develop infrastructure projects but acts as an catalyst for their development.

The role of GIDB is to undertake the responsibility of the project preparation exercise. It supports the conduct of pre-feasibility studies for various project. If the project is found bankable, it could be offered to the public-private sectors for execution. These studies are conducted through reputed Consultants.

With this backdrop, GIDB has taken initiative for setting up logistics parks at 5 designated areas in Gujarat – namely Ahmedabad-Surendranagar, Palanpur-Mahsana, Gandhidham-Samakhiali, Bharuch-Dahej and Surat-Hazira. These are important iindustrial/manufacturing centres of petro-chemcials, pharmaceuticals, textiles, dairy product. Spices SSI and electronics goods contiguous to DFC/DMIC. GIDB has commissioned RITES with this study.

10. DMIC in Gujarat

Ministry of Railways has embarked a massive investment plan of laying Dedicated Freight Corridor between Delhi and Mumbai passing through Gujarat and other States with route length of 1483 km. The area of 150 km on either side of the line will be developed as an industrial corridor. Total four industrial areas and 2 investment regions have been proposed by GOG.

11. DMIC in Other States

The DMIC has identified a total of 9 IRs and 15 IAs spreading across six states.

12. Gujarat Infrastructure Agenda

Vision 2010 in the first ‘Holistic Plan’ prepared by GIDB for infrastructure development in Gujarat taking into consideration of comprehensive view of all infrastructure sectors and seamlessly integrates them into a synchronized and synergistic plan.

Thereafter GIDB has made an ambitious long range perspective planning ‘The Blue Print’ for Infrastructure in Gujarat 2020 (BIG 2020) to ascertain the economic structure of Gujarat in next decade.

Gujarat is a progress oriented state. Several measures have been initiated to encourage investment and entrepreneurial activity in the state basically related to basic infrastructure development of ports, industries and industrial zones.

13. Section I- Ahmedabad-Surendranagar MMLP

Project Influence Area (PIA)- On this corridor, the following districts have been identified- Ahmedabad, Surendranagar, Gandhinagar and Rajkot, Bhavnagar.

Connectivity- Road- NH 15 and NH 8A connecting Gandhidham to north hinterland and Ahmedabad. Rail- Gandhidham is main hub with connectivity to Kandla and Mundra/New Bhuj with rest of India. DFC- Through PIA does not within DFC/DMIC, its leg/diagonals are connected to Kandla and Mundra port through Kachchh Railway Corporation Gandhidham-Samakhiali-Palanpur Ports- Kandla and Mundra are the main ports serving the area. Airport- Bhuj, Mundra and Kandla

Connectivity- Road- NH 8
Rail- Vadodara is the junction point between Mumbai-Delhi BG main line via Ahmedabad and via Ratlam-Kota.
DFC- Alignment with cargo exchange point at Makarpura.
Ports- Dahej port with several captive jetties.
Airport-Vadodara
The PIA is situtated within DMIC

Biennial vibrant Gujarat Investors’ Summit is being organized by GOG since 2003. The last one was on January 2009. During VGGIS 2009, GoG has signed MoUs for setting up Multi Model Logistic Parks with Private Sector Participation.